Demand accelerates for older used electric cars, but sub-one-year-olds struggle to sell (video)

Nearly new electric vehicles are taking longer to sell, but demand is rising for three-year-plus models, according to Auto Trader.

Speaking on the latest Fleet News Quarterly Market Insight, Auto Trader director of automotive finance Rachael Jones revealed that electric cars under a year old are taking on average 49 days to sell, which is putting pressure on franchised dealers and reducing their desire to take younger BEVs onto their forecourts.

However, stock is moving much more quickly in the one-to-three-year-old sector, where electric cars are selling at an average of 28 days.

“As you move into three-to-five-year-old, these vehicles have reached price parity (with ICE),” Jones said. “There is good demand for them, and they are the fastest selling vehicles on Auto Trader, faster than any other fuel type, including ICE and hybrid. They sell at 22 days.”

There are variances by brand across all the age cohorts. In the sub-one-year category, Tesla is enjoying strong performance while the likes of Hyundai are struggling.

“After two years of (residual value) decline, we are seeing a bit of pricing stability, as that level of decline has created price parity in certain age cohorts,” said Jones. “So when the price gets to the right point, we see demand grow.”